You are a researcher at Company A. Company A conducts research into corporate governance and sells reports to the investment community and academics. Recently, you are trying to identify corporate governance weaknesses for Company B, a US-listed company

a) You notice that Company B has a staggered board. Explain what a staggered board is and how the use of staggered boards affects hostile takeovers

b) Suppose that you find that the CEO of Company B sold 75000 shares of Company B in one week before the release of its EPS, which is much lower than the investor's expectation. What is the terminology of the CEO's activity? Explain the adverse effect of the CEO's activity

c) Suppose you are told that the US government just reduced the tariff dramatically for Company B's industry. Explain whether the reduction in the tariff help to discipline the managers of Company B

The question come from the subject of Corporate finance